Lecture
Internet marketing (eng. Internet marketing ) - the practice of using all aspects of traditional marketing on the Internet, affecting the main elements of the marketing mix: price, product, place of sales and promotion. The main goal is to get the maximum effect from the potential audience of the site.
The main elements of the Internet marketing complex:
Product (Product) - what you sell through the Internet, must have a decent quality. It competes not only with other sites, but also with traditional stores.
Price (Price) - it is considered that the price on the Internet is lower than in a regular store due to cost savings. Check prices and compare them with competitors regularly.
Promotion (Promotion) - a set of measures to promote both the site and the product as a whole in the network. Includes a huge arsenal of tools (search engine promotion, contextual advertising, banner advertising, e-mail marketing, affiliate marketing, viral marketing, hidden marketing, interactive advertising, working with blogs, etc.).
Place of sales (Place) - point of sale, that is, the site. A huge role is played by both graphic design and site usability, and the quality of processing requests from the site [1] . You should also pay attention to the download speed, work with payment systems, delivery terms, work with customers before, during and after the sale.
Internet marketing is a component of e-commerce. It is also called online marketing. It may include parts such as Internet integration, information management, PR, customer service and sales. E-commerce and Internet marketing have become popular with expanding access to the Internet and are an integral part of any normal marketing campaign. The segment of Internet marketing and advertising is growing both in the consumer sector, as evidenced by the appearance of new online stores every day, and in the B2B market. The main advantages of Internet marketing are interactivity, the ability to target as accurately as possible, the possibility of post-click analysis, which leads to the maximum increase in indicators such as website conversion and Internet advertising ROI. Internet marketing includes such elements of the system as:
Until 1990, the use of the Internet for business was prohibited by the regulations of the National Science Foundation of the USA, but later large companies gained access to it. After the transfer of control over the Internet into private hands in 1992, the circle of consumers and Internet service providers expanded significantly, and the network connected millions of people and computers around the world. In the same year, the first online store of Charles Stack opened, selling books. In 1994, Amazon was opened, which launched its online store in July 1995. In October 1994, First Virtual began offering its services for paying for goods on the Internet and became the first electronic payment system. A couple of years in 1996, MasterCard and Visa announced the creation of an open single standard for the protection of payments on the Internet using plastic cards, which was called SET. A little later, the first search engines begin to appear. [2]
Now Internet marketing is more than selling information products; now we are trading in the information space, software products, business models and many other goods and services. Companies such as Google, Yahoo, and MSN have taken a new level and segmented the online advertising market by offering local and local advertising services to small and medium businesses. Return on investment has increased, and expenses have been reduced. This type of marketing has become the basis of modern capitalism, which allows anyone who has an idea, product or service to reach the widest possible audience.
The use of the term “internet marketing” usually implies using direct response marketing strategies that are traditionally used in direct mail, radio and television commercials, only here they apply to the business space of the Internet.
These methods have been very effective when used on the Internet because of the ability to accurately track statistics, multiplied by the ability to be in relatively constant contact with consumers, be it B2B or B2C (business to consumer). This possibility of precision analysis is now universally applied, and therefore you can so often see terms such as ROI - investment payback ratio, conversion rate - effective visit rate (also known as site conversion), as well as instantly get sales, demand statistics, etc.
In 2012, according to the results of the RAEC survey [3], the advertising market was: contextual advertising - 37, 55 billion rubles, media advertising - 19, 20 billion rubles, video advertising - 1.74 billion rubles. At the same time, the market for search marketing was 10.24 billion rubles, and the social marketing market for SMM was 4.67 billion dollars.
According to RAEC forecasts for 2013, the volume of the contextual advertising market should increase by 28%, media by 16%, video advertising by 72%. Search marketing by 19% and social by 32% [3] .
Internet marketing is associated with several business models. The main models: business-to-business (B2B) and business-to-consumer (B2C). B2B consists of companies that do business among themselves, while B2C implies direct sales to the final consumer. The first model appeared B2C. The B2B scheme turned out to be more complex and began to operate later The more rare models include the consumer-to-consumer model (C2C), where ordinary Internet users change among themselves and sell goods to each other. An example is the international eBay auction or the Kazaa file-sharing system. As well as C2B models - the seller of the goods or services is a private individual, and the consumer is a commercial organization.
Internet marketing primarily provides consumers with the opportunity to get information about products. Any potential consumer can, using the Internet, get information about the product, as well as buy it. Although, if there is no information about one product, or he does not find it, then most likely he will acquire another product from a competitor.
The use of Internet marketing methods is aimed at saving money (on wages of sales and advertising staff), as well as on expanding the activities of companies (transition from the local market to the national and international market). At the same time, both large companies and small ones have more balanced chances in the struggle for the market. Unlike traditional advertising media (print, radio and television), entering the market via the Internet is not very expensive. The important point is that, unlike traditional marketing methods of promotion, Internet marketing provides a clear statistical picture of the effectiveness of the marketing campaign.
Compared to other types of media marketing (print, radio and television), internet marketing is growing very fast. It is gaining increasing popularity not only among businesses, but also ordinary users who want to promote their effective website or blog and make money on it. However, in developed countries, internet marketing and advertising costs account for about 5% of total advertising costs.
Internet marketing constraints create problems for both companies and consumers. If a consumer has a slow Internet connection, this leads to difficulty in using animated commercials, presentation films and high-quality graphics in advertising, although, in principle, the problem with speed is a matter of time, every day there are fewer “slow” users. The dial-up is occupied by high-speed Internet.
The next disadvantage is that Internet marketing does not allow the consumer to test the product before making a purchase. But most consumers solve this problem simply. They get acquainted with the goods they are interested in in a regular store, and make a purchase in the online store. Germany, for example, passed a law in 2000 (Fernabsatzgesetz, later merged with BGB), under which any buyer can return goods purchased over the Internet without any explanation and receive a full refund. This is one of the main reasons why online trading is so developed in Germany.
The problem of the buyer’s inability to “touch” a product can also be solved in other ways, for example, some owners of online stores use photos of high quality goods and resolutions, trying to convey all the details and features of their products in images. The use of special photo-technology for digitizing pictures of goods in 3D format (three-dimensional image), which gives the visitor of the online store to view goods from all angles, is also gaining popularity.
Another inhibitory factor is the limited payment methods that consumers trust. But, in principle, all these restrictions apply only to B2C.
Security issues are very important for both companies and consumers involved in online business. Many consumers are afraid to shop online, as they are not sure that their personal information will remain confidential. There have already been cases where companies that were engaged in online business, were caught on the disclosure of confidential information relating to their customers. Some of them have declared on their websites that guarantee the confidentiality of consumer information. By selling information about their customers, such companies violate not only their declared policy, but also the laws of several states at once.
Some companies buy information about consumers, then offer the consumer for money to remove this information from the database. One way or another, many consumers do not know that their private information is disclosed and cannot prevent the exchange of this information between unscrupulous companies.
The issue of security is one of the core issues for companies that take business seriously on the Internet. Encryption is one of the main methods used to ensure the security and privacy of transmitted data on the Internet.
Internet marketing has had a tremendous impact on a number of business areas, including the music industry, banking, the market of portable electronic devices (mobile phones, players, etc.), the so-called “flea market” and, most importantly, advertising.
In the music industry, many consumers began to buy and download MP3 music from the Internet instead of buying a CD.
Internet marketing has also affected the banking industry. An increasing number of banks offer their services online. Online banking is more convenient for the client, as it eliminates the need to visit the bank or its branches every time. In the United States today, about 50 million people use online banking services. Online banking is one of the fastest growing online business sectors. Increasing internet connection speeds play a crucial role in this. Of all Internet users, about 44% use Internet banking services.
Online auctions have gained popularity, flea markets are struggling to survive. Unique items that used to be found in flea markets are now sold at online auctions, such as eBay. Also, the development of auctions greatly influenced the prices of unique and antique items. If before the price information was difficult to find, now you can see the price for a similar thing at the auction. And to have at least a general idea of the value of the goods, as you can always find out for how much this or that thing was sold. More and more sellers of such goods do their business online, sitting at home.
The effect on the advertising industry has been and remains truly enormous. In just a few years, the volume of online advertising has grown rapidly and reached tens of billions of dollars a year. Advertisers have begun to actively change their preferences and today Internet advertising already occupies a larger market niche than radio advertising (in developed countries). Internet marketing has influenced the B2B sector quite strongly, and this influence is increasing every day.
Today it is difficult to find a large industrial enterprise that does not promote itself in the network. Growth trends can be easily seen in the constant expansion of online shopping sites, as well as an increase in their number. Online trading platforms have long ceased to be bulletin boards, from which they have grown. Today, some of them have become large corporations providing a range of marketing services. Growing prices for participation in such sites (meaning privileged membership), despite the fact that their number increases.
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seo, smo, monetization, basics of internet marketing
Terms: seo, smo, monetization, basics of internet marketing